Dear Mr Tan
I am very encouraged by your courage, labour, love and compassion heart towards the victims who lose their saving due to the deceitfulness of the financial institutions.
I am praying daily for these victims to be strong, to have the strength and peace to go through this period of stress, anger and sorrow. I am very concerned now for those who are in need of money now for their basic needs such as health, children's education etc. I am wondering is there any need of setting up a donation fund to help them. I feel very sad for them.
Uncles and aunties, you must be strong and stand up like the mountain! Please take good care of your health. I am on your side.
Praying for you
JS
Tuesday, October 14, 2008
Caveat emptor: A licence to cheat
Definition by Tan Kin Lian: Caveat emptor (let the buyer's beware): A licence for the financial expert to cheat the unsavvy consumers.
Comment posted in my blog
Dear all ,
Please read this article ( published in BT dated 15 Oct ) titled 'Times to make sellers beware, not just buyers'.
I quote the followings : " ... Here we have essentially an insurance policy taken out by Lehman Brothers via its own special-purpose vehicle named Minibond to protect its exposure to six prominent banks known as 'reference entities' or REs. The money invested by the Singapore and Hong Kong public formed the insurance payout should any of the six have failed over the period in question, and in return for use of the public's money, Lehman paid the public an attractive annual coupon of 5 per cent which was, in effect, an insurance premium.
It was brilliant in its conception, simplicity and execution: Lehman transferred its risk of loss from any RE failure to the public but structured the deal and its sale documents to give the impression this was a desirable arrangement.
If caveat emptor is to be reasonably used as a defence (or a criticism of the retail investing public for not reading or understanding the offer documents), then the cover of the prospectus should have had a description of the exact nature of the product as an insurance policy, the fact that Minibond was Lehman, the financial standing of Lehman, Lehman's reasons for needing the insurance and that the risk of loss was not limited to one of six banks failing but, in fact, seven.
Since this was not the case, there must surely be grounds for claims that disclosure was poor, possibly even misleading and that a defence of caveat emptor is not good enough. If buyers were to beware, then there should have been full and proper disclosure of all essential elements in the proper fashion....."
Comment posted in my blog
Dear all ,
Please read this article ( published in BT dated 15 Oct ) titled 'Times to make sellers beware, not just buyers'.
I quote the followings : " ... Here we have essentially an insurance policy taken out by Lehman Brothers via its own special-purpose vehicle named Minibond to protect its exposure to six prominent banks known as 'reference entities' or REs. The money invested by the Singapore and Hong Kong public formed the insurance payout should any of the six have failed over the period in question, and in return for use of the public's money, Lehman paid the public an attractive annual coupon of 5 per cent which was, in effect, an insurance premium.
It was brilliant in its conception, simplicity and execution: Lehman transferred its risk of loss from any RE failure to the public but structured the deal and its sale documents to give the impression this was a desirable arrangement.
If caveat emptor is to be reasonably used as a defence (or a criticism of the retail investing public for not reading or understanding the offer documents), then the cover of the prospectus should have had a description of the exact nature of the product as an insurance policy, the fact that Minibond was Lehman, the financial standing of Lehman, Lehman's reasons for needing the insurance and that the risk of loss was not limited to one of six banks failing but, in fact, seven.
Since this was not the case, there must surely be grounds for claims that disclosure was poor, possibly even misleading and that a defence of caveat emptor is not good enough. If buyers were to beware, then there should have been full and proper disclosure of all essential elements in the proper fashion....."
Individual advice
Many people have written to ask for individual advice on the following matters:
a) How should they invest their savings?
b) Should they keep or sell their investments?
c) How should they lodge their complaints?
d) Should they sell their structured product at a loss?
e) What is the current price of their structured product? What do they contain?
I am not able to give individual advice. I receive 50 to 100 e-mails each day on these personal matters. It is not possible for me to spend the time to read and reply to these e-mails. You can get general advice from the following sources.
For general advice on investments and insurance:
www.tankinlian.com/faq
For assistance on how to lodge a complaint and take subsequent steps:
http://tankinlian.blogspot.com/2008/10/affidavit-statement-made-under-oath.html
http://tankinlian.blogspot.com/2008/10/lodge-your-complaint-with-distributor.html
Refer to the topics on the right under "Credit Linked Securities"
Contact persons:
http://tankinlian.blogspot.com/2008/10/contact-persons.html
For information about the details or price of the structured product:
> Refer to the distributor who sold the product to you. They have a duty to answer your questions completely.
For information about NTUC Income:
> Call the contact center about NTUC Income 6346 2663. They have a duty to answer your questions completely.
a) How should they invest their savings?
b) Should they keep or sell their investments?
c) How should they lodge their complaints?
d) Should they sell their structured product at a loss?
e) What is the current price of their structured product? What do they contain?
I am not able to give individual advice. I receive 50 to 100 e-mails each day on these personal matters. It is not possible for me to spend the time to read and reply to these e-mails. You can get general advice from the following sources.
For general advice on investments and insurance:
www.tankinlian.com/faq
For assistance on how to lodge a complaint and take subsequent steps:
http://tankinlian.blogspot.com/2008/10/affidavit-statement-made-under-oath.html
http://tankinlian.blogspot.com/2008/10/lodge-your-complaint-with-distributor.html
Refer to the topics on the right under "Credit Linked Securities"
Contact persons:
http://tankinlian.blogspot.com/2008/10/contact-persons.html
For information about the details or price of the structured product:
> Refer to the distributor who sold the product to you. They have a duty to answer your questions completely.
For information about NTUC Income:
> Call the contact center about NTUC Income 6346 2663. They have a duty to answer your questions completely.
Specific product or distributor
If you have any questions on a specific product or distributor, or you wish to discuss the with other investors in similar situation, you can post your views in this blog:
http://creditlinkedsecurities.blogspot.com/
You should choose the specific topic for your product or distributor
http://creditlinkedsecurities.blogspot.com/
You should choose the specific topic for your product or distributor
Effort to help the victims
Dear Mr. Tan
I am presently a NTUC income policy holder and I have held policies from income since 2001
I never got to know you cos the closest I ever got to know you was seeing your signature on every NTUC income statements that they send to me year after year.
I am indeed very touched by your effort to help these victims of financial structured products that turned into a total if not partial loss.
I observed how you gather the people at the speaker's corner. I saw how you calm their fears by offering them practically recourses, just like a loving father you assured them and gave them some hope. That speaks a lot about your character and more so you are indeed a good model for every financial professionals to emulate.
You have my full permission to publish my letter in your blog because all these words that was written about you is true.
God bless you , Kin Lian
Yours sincerely
Francis Lim
I am presently a NTUC income policy holder and I have held policies from income since 2001
I never got to know you cos the closest I ever got to know you was seeing your signature on every NTUC income statements that they send to me year after year.
I am indeed very touched by your effort to help these victims of financial structured products that turned into a total if not partial loss.
I observed how you gather the people at the speaker's corner. I saw how you calm their fears by offering them practically recourses, just like a loving father you assured them and gave them some hope. That speaks a lot about your character and more so you are indeed a good model for every financial professionals to emulate.
You have my full permission to publish my letter in your blog because all these words that was written about you is true.
God bless you , Kin Lian
Yours sincerely
Francis Lim
Meeting of High Notes investors
To investors of High Notes
The organisers have decided to call off the meeting at DBS headquarters tomorrow (Wednesday). They are arranging a meeting at Speaker's corner on Saturday from 5 - 7 p.m.
Investor of the High Notes will be asked to sign a Collective Letter to DBS Senior Management requesting a meeting to address:
1) To review the Statement of Account for each of the High Notes as to the total amount collected, the amount paid out as commission, the premium collected from the list Credit reference list and the Credit Debt Obligations and the expenses incurred.
2) To discuss how DBS propose to remedy our investments.
End of message
The organisers have decided to call off the meeting at DBS headquarters tomorrow (Wednesday). They are arranging a meeting at Speaker's corner on Saturday from 5 - 7 p.m.
Investor of the High Notes will be asked to sign a Collective Letter to DBS Senior Management requesting a meeting to address:
1) To review the Statement of Account for each of the High Notes as to the total amount collected, the amount paid out as commission, the premium collected from the list Credit reference list and the Credit Debt Obligations and the expenses incurred.
2) To discuss how DBS propose to remedy our investments.
End of message
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